After the local government announced plans to build four bridges crossing Hong river and Duong river, some investors are betting that eastern districts of Hanoi could become a “hot spot” for new real estate developments.
Do Thu Hang, Head of the Research Department of Savills Ha Noi - a global real estate services provider, confirmed that the new bridges would likely bring new attention to the area.
The transportation infrastructure in the east of Hanoi, which used to be an obstacle for investment, has been significantly improved with such big projects as the constructions of Dong Tru, Vinh Tuy, and Thanh Tri bridges.
Hang said that the core of Hanoi would be expanded to include Long Bien, Gia Lam, and Dong Anh districts.
However, she said that the blooming of real estate market in these areas depends on the sufficient conditions such as the completion of infrastructure and facilities. These conditions are essential for the east of Hanoi to be developed in a balanced way that is integrated with other parts of the city.
For now, investors are advised to be cautious about investing in areas like this, as dreams of becoming a billionaire overnight could be crushed if these infrastructure plans become stalled.
“More factors related to social utilities and infrastructure are needed. The constructions of only five bridges would not be able to promote the development of the real estate market. Therefore, it takes time to develop the eastern part of Hanoi,” said Do Thu Hang.
Nguyen Hoai An, head of Market Research and Consultancy at CBRE Vietnam, the world's leading commercial property and real estate services adviser, said that the current infrastructure in Long Bien district is very convenient; therefore, the launching of projects connecting the district and the center of Hanoi would raise the value of properties in this area. However, no one knows when and how much will it increase.
Likewise, Nguyen Bich Trang, director of CBRE Vietnam's Hanoi Office, said the real estate market depends greatly on the government’s policies, infrastructure system, and utilities. She said that it was too soon to identify that the real estate market in the east of Hanoi will strongly develop.
Currently, eastern and northern parts of Hanoi have attracted a number of large investors like Him Lam Land Trading Corporation, Vingroup with some projects being launched like Vinhomes Riverside - The Harmony, Eurowindow Riverpark, and Northern Diamond.
